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Lucknow witnesses no slowdown

Being a city dominated by government employees, last month saw UP government announcing salary hike, and releasing old dues. With good cash reserves with local consumers, Lucknow IT market has no reason to slowdown

Author: Amit Panday
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Lucknow witnesses no slowdown
Wednesday, November 19, 2008

The IT market of Lucknow hasn't seen much of a slowdown despite the much-hyped credit crisis and reducing rate of returns on investments (RoI). On the contrary, there has been a positive response from IT channel partners in the city. The major reason for the feel-good factor is the large number of government employees residing in the city. With UP government announcing salary hike for employees pumping the cash reserves with the local consumers, the sales in IT sector have seen no change. In fact, according to sources, the sales of laptops and desktops have actually gone up. Surinder of Sagar Infosystem said, "Compu­ters and its accessories haven't seen any change in its demand. Laptops are gaining popularity over desktops now. Local consumers prefer to go for branded laptops instead of desktops, as the price difference is reducing. A trend that is expected to follow in future too."

Pankaj Kumar Agarwal of Docket Care Systems said, "Local customers prefers only branded products, specially laptops and desktops. This is a bad time for new products being launched in the market, as people don't trust them. Local customers are looking for returns on every single rupee that they spend."

He further added, "There is no scope for new products in the market with innovative features. Consumers are skeptical about spending money on any thing from which they are not sure of getting adequate RoI. That is where brand positioning has an advantage and vendors like HP/Compaq, Sony, Dell are scoring."

For partners in Lucknow big brands are still very easy to sell as compared to non-branded products. For any brand, apart from the pricing, advertising and promotion of their products also plays a key role in defining the demand. Hence reducing price rates and an increasing need for computers is only pushing the sales further.

"Demand is certainly going to increase in future. We depend a lot on computers these days and this trend will only increase in the future," added Surinder.

On the demand for IT solutions in Lucknow, Pankaj Kapoor of Computer Shack said, "Opportunities on the solutions front are also gearing up with time. Industry is moving towards the solutions side with their rising requirements. For example, Lucknow Univer­sity is looking forward to its complete computerization, building campus networks, connec­tivity establish­ment bet­ween both the campuses of the university. SGPGI is planning to set-up its own Hospital Information System (HIS) and establi­shing Tele-Medicine system for video conferen­cing while another hospital in the city-KGMC, is coming up with its own Hospital Management System (HMS). Those are a few instances of how requirements are coming up within the city."

Kapoor felt that there had been no slowdown within the city on the IT solutions part. He informed that brands like IBM, Microsoft and Symantec are the |most trusted brands when it comes to the demand for the IT solutions in the city.


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